4. When an organization underwrites and distributes new investment securities to helps businesses obtain financing, it will be classified as a commercial bank. * O True O False

Q: uld you simply explain & give some examples of repurchase agreements (a.k.a., “repos”) in commercial…

A: There are many types of short term instruments used by the federal bank to impart liquidity to the…

Q: Mutual funds collect money from its _____ A) lenders B) shareholders C) banks D) loan sharks…

A: The correct answer is B) shareholders.A group of investors invest in mutual funds collectively.…

Q: Which of the following is not a financial institution? Commercial Bank Rating agency O Mutual fund…

A: Financial institution is that organisation or institution in which there is dealing of financial and…

Q: regulators

A: Banking regulators serve as a guidepost to monitor the activities of banks across the region. They…

Q: plain abo

A: Introduction : A bank can be understood as the type of financial entity that takes public deposits…

Q: Give the most important things from the topic of Non-banking financial institutions

A: Solution-        A Non-Banking financial Institution-(NBFI) could be a establishment that doesn't…

Q: Which of the following can be described as involving indirect finance? a. People pay premiums to an…

A: An indirect finance is referred as the finance, where the borrowers used to borrow the funds from…

Q: What caused the banking crisis? Explain b. Why was the Insurance Guarantee Agency established…

A: A banking crisis is a situation when the banks are at the point of solvency and liquidation. It may…

Q: Directions: A. On the space provided, write TRUE if the idea being expressed is correct and FALSE…

A: Answer -    1. Investments generally earn passive income - TRUE Passive income describes money…

Q: Write a persuasive statement either supporting or opposing a bank's right to assign a mortgage to a…

A: A mortgage payment usually consists of four main components: principle, interest, taxes, and…

Q: The business holds cash, treasury notes, and corporate bonds. It is exposing itself to interest rate…

A: Since business is exposing itself to interest rate risk, it is ready to bear or accept risk.

Q: What does 'deleveraging' mean? a) Financial institutions cutting back in lending b) Financial…

A: Leverage shows how much is the debt and how much is the equity and this is very important because…

Q: Prove the statement with example "A bank should not sacrifice ether safety or liquidity to earn a…

A: Lending and accepting deposits are the two foremost basic functions as well as the very reason for…

Q: a. Securitization b. liquidation c. notarization  d.   intermediation) is an example of bank…

A: Option a is the correct answer

Q: Outline the main financial risks exposed by commercial banks and their implications on the value of…

A: The danger of losing money on an investment or business endeavor is referred to as financial risk.…

Q: The role of comercial bank?3. The operations of the commercial bank,show the chart of this…

A: Role of commercial bank Mobilization of savings:- Banks play a very important role in mobilization…

Q: 5. When an organization underwrites and distributes new investment securities to helps businesses…

A: The business obtains finance by issuing securities and bonds to meet the objectives of the business

Q: Why do financial regulators have a significant impact on banks?

A: Financial regulators are governmental or independent bodies tasked with overseeing and regulating…

Q: Which of the following bank services involves financial derivatives? Credit services O Transaction…

A: A derivative is an agreement between two or more parties in which the value is determined by an…

Q: The primary objective of every banking company is: a. To earn maximum profits out of its investments…

A: The primary objective of every banking company is To earn maximum profits out of its borrowing and…

Q: When a small firm works with an investment banker to raise funds through the sale of bonds on a…

A: Bonds:Bonds are debt instrument also known as a fixed income security that is created for raising…

Q: Question 1 Which of the following best represents how does a bank operates: O a. The bank regulates…

A: Bank is a financial institution that works as an intermediary between depositors and borrowers.

Q: Explain each action below is appropriated or not when a bank manager feels the bank is holding too…

A: Capital is the amount that remains after subtracting a bank's fixed liabilities from its assets…

Q: . If you are the firm, which instrument would you prefer between bond vs sukuk to finance you…

A: In Islam the interest is considered as Halal and therefore not allowed in based on the principle of…

Q: Which of the following can be described as involving direct finance? O A. People buy shares in a…

A: Borrowers borrow funds directly from the financial market without the need of a third-party service…

Q: 7.) Describe the debt and equity markets? How do organizations obtain financing from each market?…

A: Debt is considered riskless, however equity securities have some inherent risk.

Q: Bonds can be an effective counterbalance in a portfolio heavily invested in stocks. True False

A: Bonds: It is a type of investment wherein the issuer of the bond promises the holder of the bond to…

Q: True or False statements explain this.  Q) 3. While loan banking may seem irrelevant in today’s…

A: Now a days it has been observed that loan banking become irrelevant, there are various limitations…

Q: Given a financial institution that make money in three ways: interest income, interest income, and…

A: Banks and Financial institutions make most of their money from loaning and re-loaning money. Low…

Q: Reasons why it is important to regulate Banks especially after Covid19

A: In simple words, banks refers to the financial institutions that works as the mediators between the…

Q: a. investment banking  b. An insurance firm  c. commercial banking  d. mutual fund ) is simply a…

A: Brokers are simple the person who execute the trade on behalf of others therefore they can also…

Q: Explain in detail how can bank recover from a significant net loss due to unrealized securities.

A: The first step that a bank would take to recover from a significant net loss due to unrealized…

Q: Njenge Bank has the following balance sheet (in millions). Liabilities and Equity. Deposits…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: hich one is not an incentive for a bank to Securitize its mortgage loans? A) Reduce insurance…

A: The objective of the question is to identify which among the given options is not a reason for a…

Q: Strong) (a. investment banking   b. an insurance firm c. commercial banking  d. mutual fund ) is a…

A: Step 1 Commercial banking which is otherwise called business banking or institutional banking under…

Q: Commercial banks grant short-term finance to business firms which is known as __________. a.…

A: Commercial banks are the financial institution which makes loans , accept deposits and offers…

Q: Mutual fund companies perform similar functions to banks in that they are deposit-taking…

A: Mutual fund companies take deposits from investors in a similar way to a bank. But there is major…

Q: Describe how a bank ma

A: With their own securities trading account, a bank can get into proprietary trading. A Proprietary…

Q: Explain the basic business proposition of a commercial bank?

A: Accepting deposits and even lending funds are the primary functions of a commercial bank. Savings,…

Q: .Explain how bank regulators have in corporated interest risk into capital requirements.

A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…

Q: Think from the borrower (management) and NOT lender (investor) points of view. Which is the less…

A: Analysis of the given options from the borrower points of view:   a) Bond financing- Bond financing…

Q: These statements are True or False? Please explain. 1. The role performed by banks in which thay…

A: A bank is a type of financial institution that can accept deposits and provide loans. Wealth…

Q: What is Circulating Working Capital?  To     what extent are current liabilities a     source of…

A: Circulating Working Capital-             Circulating capital is cash being employed for core…